What is MKR coin? What can MKR coins do? How to store MKR coins?

Maker (MKR) is a governance and utility token that fuels the Maker Protocol, powering decentralized borrowing and stablecoin issuance on the Ethereum blockchain.

Oct 06, 2024 at 01:23 pm

1. What is MKR Coin?

Maker (MKR) is a governance and utility token that underpins the MakerDAO platform, a decentralized autonomous organization (DAO) that governs the Maker Protocol. The Maker Protocol allows users to create and maintain collateralized debt positions (CDPs) using Dai, a stablecoin pegged to the US dollar.

2. What Can MKR Coins Do?

MKR coins serve several crucial functions within the MakerDAO ecosystem:

• Governance: MKR holders have the right to vote on proposals related to the operation and development of the Maker Protocol. This includes changes to risk parameters, interest rates, and the addition of new collateral assets.
• Stability and Decentralization: When the Dai stablecoin deviates from its peg to the US dollar, MKR coins can be used to stabilize it by either issuing new Dai or burning (destroying) Dai. This process helps to maintain the stability and decentralization of the Dai stablecoin.
• Value Capture: MKR holders receive a portion of the fees generated by the Maker Protocol. These fees are used to fund platform development, cover operational costs, and research new features.

3. How to Store MKR Coins

MKR coins can be stored in a variety of ways, including:

• Hardware Wallets: Ledger Nano, Trezor Model T
• Software Wallets: MetaMask, MyEtherWallet
• Cryptocurrency Exchanges: Binance, Coinbase, Kraken
• Custodial Wallets: Gemini Custody, BitGo